Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Econ 110 > exam I > Flashcards

exam I Flashcards

1
Q

define economics

A

the study of the allocation of scarce resources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what are examples of economics (6)

A

natural resources, time, skills, man power, human capital and technology capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what does scarce mean

A

limited

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

a _______ always has to be made

A

choice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

unlimited _______ > limited ___________

A

wants; resources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

define needs and give an example

A

needs are relatively objective, and are things such as food.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

define wants and give an example

A

wants are more subjective and context-dependent, such as air-conditioning

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

true or false: scarcity is poverty

A

false, scarcity is NOT poverty

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

scarcity will never be _________

A

eliminated

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

scarcity requires ___________

A

rationing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

define rationing

A

criteria for who will receive goods and who will not

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what are the three types of rationing

A

government rationing
first come, first serve
markets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

describe government rationing

A

the government determines what is made, how its made, and who gets it. it favors those with political connections

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

describe first come, first serve

A

a competition using time. favors those who get in line first.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

describe markets

A

favors those who are willing and able to pay higher prices.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

rationing methods can’t __________ competition, only changes the _______ of the competition

A

eliminate; form

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

scarcity creates ________ ___________

A

opportunity costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

define opportunity cost

A

the use of resources to produce one good diverts those resources from the production of other goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

what does it mean when one option is pursued?

A

that another option must be forgone

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

nothing is _____

A

free

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

as choices are made, __________ are faced

A

tradeoffs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

what do economists assume?

A

that individuals chose options that best advance their personal desires and goals at the least possible cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

how are individual preferences revealed

A

by their choices

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

what can changes in incentives do?

A

affect human behavior in a predictable way

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
define marginal thinking
changes in cost and benefit
26
marginal benefit _ marginal cost
>
27
what does marginal cost equal
opportunity cost
28
define the sunk cost fallacy
informing future decisions on past costs is irrational and ineffective
29
give some examples of sunk cost fallacies
non-refundable gifts not being able to leave due to a lease spent twenty hours studying, so can't drop the class
30
why are non-refundable gifts irrational
people believe that since they bought it, they have to use it
31
what are secondary effects
direct and indirect costs
32
give an example of a secondary effect
using paper bags instead of plastic bags. led to more expensive products, that were harder to produce the plastic kept bacteria at bay and E. coli formed in moist paper bags
33
what does opportunity cost illustrate
that information can be very costly to obtain
34
decision making with ________ information is often more desirable than with ________ information
imperfect; perfect
35
who wrote about how markets use information
F.A. Hayek
36
what is the knowledge problem
the knowledge and specialties of millions of people are required to produce even the simplest of objects is too much information for any person/institution/etc to contain, let alone fluidly respond
37
define productive efficiency
it is impossible to produce more of one good without decreasing the quantity that is used to produce another good
38
define allocated efficiency
produced goods/services represent the most socially desired combination
39
what is an example of allocated efficiency
the amish
40
there are _ inputs of factors of production
4
41
what are the four inputs of ppf
land, labor, capital, entrepreneurship
42
what is ppf
production possibility frontier
43
what is land ppf
all space is being used adequately
44
what is labor ppf
human or animal labor
45
what is capital ppf
education or machinery
46
what is entrepreneurship ppf
human creativity
47
the ppf curve requires what?
requires that the four inputs were all fully utilized
48
what does a bowed-out ppf represent
opportunity costs are increasing
49
what does a linear ppf represents
opportunity costs are constant
50
define comparative advantage
moving one way greatly benefits one, while barely impacting the other.
51
define specialization
the gains from trade become larger over time
52
what can specialization effect?
both quantity and quality of goods/services
53
mutually beneficial exchange drives ________ ________
economic growth
54
what are the three barriers of exchange
capital, trade, labor
55
explain the capital barrier of exchange
human- government cuts off/blocks internet access technology- new tech can't leave country it was created in
56
explain the trade barrier of exchange
embargo- prevents the exchange of goods and movement of people
57
explain the labor barrier of exchange
no free movement of labor (citizens can move freely, immigrants can't).
58
if barriers were taken away: _% increase in capital _% increase in trade _________ in labor
1 2 double
59
define efficiency
any person/firm/government can produce many goods and services
60
producing is the easy part. what is the hard part?
getting people to buy the product
61
what does private property best align with
self-interest with productive and allocated efficiency
62
what does private property include
the right to exclude protection under the law the right to transfer, sell, exchange or mortgage property
63
what are the four property right incentives and describe them
1. can gain by employing their resources in ways beneficial to others ie: landlord renting out property 2. have the incentive to care for and properly manage what they own 3. have the incentive to conserve for the future ie: eating all your snacks so your roommate can't eat them 4. have the incentive to lower the chance that they will cause damage/harm to others ie: the more likely one is to be held liable for damage the more steps they take to prevent the damage
64
what did Adam smith write
the wealth of nations
65
what did smith question
mankind's destitute poverty why and how some nations had escaped this fate and become wealthy
66
what did smith believe the divergence of wealth came from
self-interest
67
define self interest
prevails in the economic sphere in order to facilitate exchange between strangers
68
incentives may impact _______ ___________
cost benefit
69
how can individuals in their peruser of wealth assist others?
by providing desired goods, services, or jobs
70
exchange matches _______ and _______
wants, needs
71
what did smith believe people were led by
an invisible hand
72
what did the invisible hand represent
unintended consequences in exchange
73
define command economics
centralized decision-making determined by politicians
74
what is command economics
public ownership, not redistribution
75
define market economies
decentralized decision-making between individuals
76
what are Market economies
private ownership, not capitalism
77
what is the economic freedom survey?
an attempt to measure the degree of economic freedom in the world's nations
78
what is looked at for economic freedom
1. personal choice in the use of resources 2. voluntary exchange coordinated by markets via the political process 3. freedom to enter and compete in markets 4. protection of persons and their property from aggression by other
79
what are the index measures
1. size of government 2. security of property rights 3. access to spending money 4. freedom to trade 5. regulation of credit, labor, and business
80
what are variables for index measure
tax rate, degree of judicial independence, inflation rates, etc

Econ 110 (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions